RIYADH: Abdullah Al-Othaim Markets Co.’s net profit declined by 26.07 percent in the third quarter of 2021, it said in a statement on Tadawul.
According to preliminary data, the net profit decreased to SR45 million ($12 million) as compared to SR60.7 million in the same quarter last year.
On a quarterly basis, its profits in the third quarter decreased by 6.4 percent compared to profits of SR47.93 million in the second quarter of 2020.
The company said that sales began to pick up in the current quarter to return to normal levels and recorded a growth of 10.15 percent on an annual basis.
It said the third quarter of the previous year also witnessed a significant decline in sales following the hike in the value-added tax to 15 percent.
The profit margin witnessed a decline due to the increase in promotions and the change in consumer behavior by focusing on discounted items, according to the company’s filing.
The performance of subsidiaries and associate companies also improved, as they were affected by precautionary measures due to the pandemic in the same quarter of the previous year.
In the first nine months of 2021, the company’s profits decreased by 47.3 percent to SR150.5 million compared to SR285.5 million in the same period of 2020.